When you decide to sell your

home, setting your asking

price is one of the most

important decisions you will ever

make. Depending on how a buyer

finds your home, price is often the first

thing he or she sees, and many homes

are discarded by prospective buyers as

not being in the appropriate price

range before these homes are given a

chance to be shown.

Your asking price is often your

home’s “first impression”, and if you

want to realize the most money you

can from your home’s sale, it is

imperative that you make a good first

impression.

Because this is not as easy as it

sounds, your pricing strategy should

not be taken lightly. Pricing too high

can be as costly to a home seller as

pricing too low. Taking a look at what

homes in your neighborhood have

sold for is only a small part of the

process, and this on it’s own is not

nearly enough to help you make the

best decision.

This report will help you understand

some important factors about

pricing strategy to help you not only

sell your home, but sell it for the price

you want.

 

 

 

 

 

 

 

 

Pricing Strategy

Starts with

Good Information

Before you can begin to know

what your home is worth, you

should do some research, bearing

in mind the following:

An analysis of what homes

have recently sold for in your

neighborhood is NOT enough

to help you properly price your

home.

A quick scan up and down the street

at the prices of homes that have

recently sold will give you a starting

point. However, this is not nearly

enough for you to base your entire

pricing strategy on. It is important

for you to understand how buyers

look for a home.

Think about how you conducted

your house hunting search to find the

home you are now thinking of selling.

You most likely did not confine

your search to a single neighborhood,

but perhaps different neighborhoods or

towns in order to find a home that best

matched your needs and desires.

The prospective buyers who will be

viewing your home, will conduct their

searches in a similar manner. That

means they will be comparing your

home to, for example, brand new

development homes, century homes,

10-20 year old homes, etc. They will

also consider locations such as homes

in established neighborhoods, the

middle of town, the suburbs or country

properties. Each home will have a

different look and feel and it’s quite

possible that a prospective buyer might

consider all of these variables in the

search for a home.

You can see, when you’re selling

your home, you’re not just competing

with the home around the corner, but

also with all homes in other areas

which have the same basic characteristics:

i.e. number of rooms, overall

living space, etc.

 

How Your Asking Price

Affects Your Selling Price

There are 4 common strategies that most

sellers use to price their homes. It is

unwise to assume that a higher asking

price will net you a higher selling price. In

fact, often this equation works in reverse if

you're not paying attention to what the market

is telling you. Bear this research in mind when

you set your asking price.

 

1. Clearly Overpriced:

Every seller wants to realize the most

amount of money they can for their home, and

real estate agents know this. If more than one

agent is competing for your listing, an easy

way to win the battle is to overinflate the

value of your home. This is done far too

often, with many homes that are priced 10-

20% over their true market value.

This is not in your best interest, because in

most cases the market won't be fooled. As a

result, your home could languish on the market

for months, leaving you with a couple of

important drawbacks:

• your home is likely to be labeled as a

"troubled" house by other agents, leading

to a lower than fair market price when an

offer is finally made

• you have been greatly inconvenienced

with having to constantly have your home

in "showing" condition . . . for nothing.

These homes often expire off the market,

forcing you to go through the listing

process all over again.

 

2. Somewhat Overpriced:

About 3/4 of the homes on the market are

5-10% overpriced. These homes will also sit

on the market longer than you want. There is

usually one of two factors at play here: either

you believe in your heart that your home is

really worth this much despite what the market

has indicated (afterall, there's a lot of emotion

caught up in this issue), OR you've left

some room for negotiating. Either way, this

strategy will cost you both in terms of time on

the market and ultimate price received

 

3. Priced Correctly at Market Value

Some sellers understand that real estate is

part of the capitalistic system of supply and

demand and will carefully and realistically

price their homes based on a thorough analysis

of other homes on the market. These competitively

priced homes usually sell within a

reasonable time-frame and very close to the

asking price.

 

4. Priced Below the Fair Market Value

Some sellers are motivated by a quick sale.

These homes attract multiple offers and sell

fast - usually in a few days - at, or above, the

asking price. Be cautious that the agent suggesting

this method is doing so with your best

interest in mind.

 

65-75% of modified mortgages are likely to re-default.. By: Eunice Mejia, June 18 2010, 8:00 AM ET According to a report released by Fitch Ratings, a N.Y. based credit-rating agency this Wednesday, borrowers who had their mortgages modified are likely to re-default within 12 months. 65% and 75% of the loans are modified through the Home Affordable Modification Program but not by the federal government, and the reason that these borrowers are going to continue to struggle is because that HAMP does not solve the rest of the problems according to the report. “Many of these borrowers still have very heavy levels of other debt, like auto loans, credit cards, and other expenses” said Diane Pendley, a Fitch managing director.”The HAMP modification reduces housing expenses down to 31% of income but do not touch these other obligations.” But not everyone takes this as a surprise, “we find re-default rates from 40% to 60% on modified mortgages. You have borrower behavior that keeps coming back” said Jay Brinkmann, the chief economist for Mortgage Bankers Association. About half of prime borrowers who lose their homes now do so through foreclosure, according to the Fitch report.

 

For many Americans, "coming up" with a down-payment for their first home purchase can be a major roadblock -- and quite often the reason for renting, rather than owning, a home.

A "down-payment" is the difference between the home's purchase price and its mortgage amount. This percentage of the sale price must be paid up-front and can vary by lender, location, and loan program. A higher down-payment generally translates into lower loan interest rate requirements.

Typically, a down-payment comes from personal cash savings, but it can also be a gift that is not to be repaid, or a borrowed amount secured by assets.

While conventional loan down-payments may be close to 20% of the sale price, government loans typically have lower down-payment requirements. This allows potential homebuyers who normally cannot meet down-payment requirements an opportunity to qualify for a mortgage. Keep in mind that down-payments that are less than 20% of the sale price typically require mortgage insurance payments.

Down-Payment Assistance Programs

Fortunately, there are programs and organizations that can help you with your down-payment requirements:

Government Loan Programs - Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) may offer assistance in paying your up-front cash requirements. These programs can significantly reduce your down-payment requirements. You may also want to contact your local Department of Housing and Urban Development (HUD) Community Builders to find out what local down-payment assistance programs are available.

State Housing Authorities - State agencies may offer down-payment assistance programs in your state.

Private Mortgage Insurance - Private insurance companies that offer you the opportunity to finance some of your down-payment requirements. This allows lenders to accept lower down-payments than they would normally allow.
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 Great news from Washington!

The Senate on Wednesday approved a plan to give homebuyers an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.

The move by Senate Majority Leader Harry Reid would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

The proposal, approved by a 60-37 vote, would only allow people who already have signed contracts to finish at the later date. About 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline.

 

 

McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.72 percent with an average 0.7 point for the week ending June 10, 2010, down from last week when it averaged 4.79 percent. Last year at this time, the 30-year FRM averaged 5.59 percent.

The 15-year FRM this week averaged 4.17 percent with an average 0.7 point, down from last week when it averaged 4.20 percent. A year ago at this time, the 15-year FRM averaged 5.06 percent. The 15-year FRM has not been lower since Freddie Mac started tracking the 15-year FRM in August of 1991 and sets another record low for the fourth straight week.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.92 percent this week, with an average 0.7 point, down from last week when it averaged 3.94 percent. A year ago, the 5-year ARM averaged 5.17 percent.

The 1-year Treasury-indexed ARM averaged 3.91 percent this week with an average 0.6 point, down from last week when it averaged 3.95 percent. At this time last year, the 1-year ARM averaged 5.04 percent. The 1-year ARM has not been lower since the week ending May 27, 2004 when it averaged 3.87 percent.

"Following a relatively weak employment report, bond yields fell this week and mortgage rates followed," said Frank Nothaft, Freddie Mac vice president and chief economist. "Private payrolls rose by 41,000 jobs in May, less than a quarter of the market forecast consensus of an 180,000 gain. Interest rates on 30-year fixed mortgage hover near the record low set on December 3, 2009 in our survey; the Primary Mortgage Market Survey began in April 1971. Meanwhile, rates on 15-year fixed mortgages set another record low for the fourth week in a row."

"Overall, the economy does show signs of improvement. The Federal Reserve reported in its June 9th regional economic review that the economy strengthened in all 12 of its Districts over April and May. It also noted that loan quality was stable or improving in most Districts, but remained an issue for banks with large exposure to real estate."

 

RISMEDIA, June 7, 2010—Pending home sales have risen for three consecutive months, reflecting the broad impact of the home buyer tax credit and favorable housing affordability conditions, according to the National Association of Realtors.

The Pending Home Sales Index, a forward-looking indicator, rose 6.0% to 110.9 based on contracts signed in April, from an upwardly revised 104.6 in March, and is 22.4% higher than April 2009 when it was 90.6. That follows gains of 7.1% in March and 8.3% in February.

Pending home sales are at the highest level since last October when the index reached 112.4 and first-time buyers were rushing to beat the initial deadline for the tax credit. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said this second round of surging sales from the tax credit extension looks as strong as the original tax credit. “There were concerns that only a small pool of buyers were left to take advantage of the tax credit extension. But evidently the tax stimulus, combined with improved consumer confidence and low mortgage interest rates, are contributing to surging sales,” he said. “The housing market has to get back on its own feet and now appears to be in a good position to return to sustainable levels even without government stimulus, provided the economy continues to add jobs.” NAR expects a net of 1 million additional jobs in the second half of this year and about 2 million in 2011.

“The home buyer tax credit brought close to 1 million additional buyers into the market, which is now helping the trade-up market and has significantly improved the inventory situation. This stabilized home prices more quickly and has preserved about $900 billion in home equity; in turn, that is keeping additional households from going underwater and risking foreclosure,” Yun said.

The PHSI in the Northeast jumped 29.5% to 97.9 in April and is 24.5% above a year ago. In the Midwest the index rose 4.1% to 104.2 and is 17.9% above April 2009. Pending home sales in the South slipped 0.6% to an index of 123.9, but is 31.3% higher than a year ago. In the West the index rose 7.5% to 107.9 and is 12.0% higher than April 2009.

“A big concern surfacing recently is insufficient time to close the deal at the settlement table. Under normal circumstances, two months would be enough time from contract signing to settlement date,” Yun said. “However, the recent housing cycle has brought long delays related to the short sales approval process by banks, and from ongoing appraisal issues. There could be a sizable number of home buyers who responded to tax credit incentives, but may encounter problems meeting the settlement deadline by June 30.” Because of these market challenges, NAR has asked Congress to provide flexibility on the deadline for closing.

 

The first step in self-marketing is knowing why clients should choose you over your competitors. Because if you don't know, you can't tell them!

The trouble is, a good Realtor doesn't always realize that he or she does anything different from everyone else. You know all the things you do for your clients and feel that it's just part of the job. But you don't always recognize the fact that you're special. Not all agents do what you do.

For instance, some agents don't return their phone calls. Ever.

Just because you make it a point to answer your client's inquires as quickly as possible, you assume that others do the same. But some wait for hours, or until tomorrow, or until next week. And as I said, some don't bother to call at all.

You probably also keep your listing clients informed about activity on their property. But not all agents do that.

You probably take the time to prepare an accurate market analysis before suggesting a selling price. Some agents just pull a number out of the air, and some deliberately quote a high price in order to get the listing.

How about the way you market your listings? You probably go out of your way to take good photos, or even have a professional take them. And you probably take the time to fill in all the blanks on the MLS listing sheet - including some enticing descriptions. And then, you probably do an extensive "virtual tour" on yours or your company's website.

After that, you probably have some methods of your own that you use to get your listings in front of both buyers and agents with buyers. Right?

Not all agents bother with all that. Some just fill in whatever is required for a MLS listing and forget about it.

Beyond that you may offer special services such as help with staging or with finding rental properties for families who are in that space between selling an old home and moving into a new one.

And what about the help you provide during that crucial time between getting an offer and attending a closing? If you've been in real estate sales for very long, I'm sure you've run into agents who don't pitch in to solve the problems that can cause a transaction to fail.

So before you begin your next round of self-marketing, take the time to sit down and list all the things you do for your buyers and sellers - even if those things seem trivial to you.

Then think about which of those things are most important to your prospects, and write about them.

Remember not to start out by saying "I return all phone calls the same day." Instead, turn it around so the focus is on your prospects and the service they want. Say something like: "Your questions and concerns are important to me, so I'll always return your calls within X hours."

Tips on Selecting a Westchester Contractor For Home Improvement

 

 

Purpose of Initial Communication: 

Within 60 seconds you must: 
1. Turn suspects into prospects
2. Qualify for interest
3. Set an appointment

Communication Plays:
1. Rapport Play – Who I am
a. Your goal with the rapport play is to: Break the ice, lay the foundation for a relationship,
                   establish professionalism and credibility, and it lets them know who you are.
b. You must execute with confidence, keep it short, and make a connection.
c. Example:  “Hello Mr. Jones, I’m Jordan Wexler with Encino Business Network.
                   You may have heard of us.”
 
2. Positioning Play – What I do
a. Your goal with the positioning is to: Stake a claim and let them know what you do.
b. You must “claim it or never own it” and state it often.
c. Example:  “I am running the Encino Business Network where we connect thousands
                  of local business professionals together.”

3. Benefit – Why clients like you care
a. You must transition your focus to your prospect where you make an offer of something
                   desirable and compelling.  You must tell them why customers care about your service
                   so they are inspired to meet with you.
b. Remember that all prospects are self-interested so you must present benefits, advantages
                  and features to peak their interest.
c. Make sure that your benefit play covers one of these benefits for your prospects: Profit,
                   Pain Relief, Pleasure, Prestige or Preservation.
d. Example: “We help business professionals receive quality referral leads from consumers
                  and other business professionals while also assisting them in getting ranked on the first
                  page of major search engines.”

4. Proof – Evidence/proof of why you should care
a. You must include proof to back up your benefits to strengthen your credibility and
                   validate any of your claims.  This builds confidence in you as a salesperson, and it
                   shows evidence of the benefit to the consumer.
b. Remember that sales is an honorable profession, so keep it that way.  Integrity leads
                   to repeat business, so the proofs must be true, verifiable and related to stated benefit.
                   Keep the proofs reasonable specific and include any referral names if possible to strengthen your claims.
c. Example: “Many of the business professionals in my network have been ranked on the
                   first page of major search engine in as little as 2 weeks;  and Mr. Hansen,

                   who owns a local painting store, has already received more than $13,000 in referral business from my network.” 

5. Schedule the next event
a. Before going into a more in-depth explanation of your service, try to schedule the next
                   event.  This alleviates frictions in the sales process and it also sets the expectation of
                   moving toward the close.
b. By scheduling the next event, you increase your likelihood of moving forward to a close,
                   and saves time and follow-up work.
c. Example  "I’m confident that my business network will help you grow your business, but
                   I would like to know more about your business so we can identify how my business network can help you increase your bottom line.  Do you have a minute right now,

or can we meet on Wednesday or Thursday at 4:00 pm, whenever is most convenient for you?"

Summary of Initial Communication Play
“Hello Mr. Jones, I’m Jordan Wexler with Encino Business Network. You may have

heard of us.  I am running the Encino Business Network where we connect thousands

of local business professionals together.  We help business professionals receive quality

referral leads from consumers and other business professionals while also assisting

them in getting ranked on the first page of major search engines.  Many of the business

professionals in my network have been ranked on the first page of major search engine

in as little as 2 weeks;  and Mr. Hansen, who owns a local painting store, has already

received more than $13,000 in referral business from my network..  I’m confident that

my business network will help you grow your business, but I would like to know more

about your business so we can identify how my business network can help you increase

your bottom line.  Do you have a minute right now, or can we meet on Wednesday or

Thursday at 4:00 pm, whenever is most convenient for you?”

 

 

Most of us know that adopting an environmentally-conscious or “green” approach to life can benefit the planet and its future generations. But did you know that greening your home can also benefit your bottom line in terms of energy savings and tax credits?

We’ve learned a lot of the latest green building strategies from clients and home builders we deal with. As a Member of the Top 5 in Real Estate Network®, I, along with my team, thought we’d share some innovative green building ideas from the National Association of Home Builders (NAHB, www.nahb.org) in case there’s a remodel or new-home build in your future:

1.The roof. According to NAHB, 75% of new homes use “oriented strand board” (OSB), an engineered wood product that does not require the use of large trees in its production, to sheathe roofs and walls. Additionally, durable roof coverings, such as steel and fiber cement, reduce the need for roof replacement and are a key part of many solar roofing products that lock in heat during winter and help keep homes cool in summer.

2.The windows. Energy-efficient windows that incorporate advanced technologies like low-emittance glass coatings, keep heat inside in winter and outside in summer. “Passive” solar design features like large, south-facing windows, also help heat the home in the winter and allow for abundant natural lighting.

3.The walls. Vinyl siding on exterior walls saves money on installation and maintenance; fiber-cement siding is termite- and water-resistant and warrantied to last 50 years. Increasing the amount and R-value of insulation is a cost-effective way to save energy and help reduce heating and cooling bills, which account for at least half of all energy use in the home.

4.The outside. “Xeriscaping,” or using native plants, can significantly reduce the need for watering, fertilizers and herbicides, and preserving trees on your property reduces energy costs by providing shade in summer and a wind barrier in winter. Also consider a covered entry for your front door, which can help prevent water intrusion and costly repairs.

5.The appliances. According to NAHB, the energy efficiency of refrigerators and freezers has tripled over the last three decades. Front-loading washers use about 40% less water and half the energy of conventional models. New toilets have redesigned bowls and tanks that use less water, while advanced shower and sink faucet aerators provide the same flow regardless of reduced water use.

Please consider the above green building ideas for your next construction project and forward this e-mail to anyone else who may be in construction mode. We’d be happy to answer any questions you may have or point you toward further green resources, so feel free to e-mail our team for more information.

Sincerely,

Anthony Crecco & Joanne Ricciardella
Crecco Real Estate
Office: 914-449-6547
Mobile: 914-469-1861
anthony@creccorealestate.com
http://www.CreccoRealEstate.com

Posted via email from WESTCHESTER COUNTY DISTRESSED PROPERTY INFORMATION

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Posted By Anthony Crecco to Westchester County Home News